Cup and handle formation theory
Hello everyone , as I expected in my previous post LTC made a good run and climbed to the top of the channel were it found resistance at 71.5 . From here i expect imediate consolidation and retesting of the upper chanel resistance line. RSI is in very good position right now at around 70 on all three 1 hr, 4 hr and 1 day time frames. with high volume.
My theory is that, to have a perfect Cup and handle formation we shouldn't take in consideration the dip from march which was caused by a black swan event and consider that the cup has a perfect rounded bottom. If this is right than the neckline should be at 68 and was broken today. this cup and handle formation should take us to around 95- 100 limit in the short term were we will probably find resistance .
Thank you for your support please leave a thumb up if you like my idea.
Take care and good trade to everyone.
My theory is that, to have a perfect Cup and handle formation we shouldn't take in consideration the dip from march which was caused by a black swan event and consider that the cup has a perfect rounded bottom. If this is right than the neckline should be at 68 and was broken today. this cup and handle formation should take us to around 95- 100 limit in the short term were we will probably find resistance .
Thank you for your support please leave a thumb up if you like my idea.
Take care and good trade to everyone.
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